Agenda item

Annual Housing Revenue Account (HRA) rent and service charge setting review

Decision:

*RESOLVED –

 

1.   That, for 2021/22, individual social rents be set based on the current National Social Rent Policy, giving a rent increase of 1.5% with effect from 5 April, 2021.

 

2.   That, for 2021/22 and onwards, where a social rent property is re-let to a new or transferring tenant the rent level be increased to the target rent for that property.

 

3.   That, for 2021/22, individual affordable rents be set based on the current National Social Rent Policy giving a rent increase of 1.5% with effect from 5 April, 2021.

 

4.   That, for 2021/22, and onwards, where an affordable rent property is re-let to a new or transferring tenant the rent level be set by reference to 80% of the market rent (including service charges where applicable) for a similar property at the time of letting or the formula rent for the property, whichever is the greater.

 

5.   That the Housing Revenue Account service charges for 2021/22 be increased as set out in Appendix A of the officer’s report.

 

REASONS FOR DECISIONS

 

1.   To enable the council to set the level of council house rents in accordance with Government guidelines and the Rent Standard.

 

2.   To enable the council to set service charges for 2021/22 and ensuring the cost of delivering services continues to break even.

 

3.   To contribute to the council’s corporate priority ‘to improve the quality of life for local people’.

Minutes:

The Service Director – Housing presented a report recommending the Council house rent and service charge levels for 2021/22 for approval.

 

Social housing rents were set according to the Government’s national social rent policy and the Welfare Reform and Work Act 2016. In accordance with the Government’s National Social Rent Policy, which came into effect on 1 April, 2020, the report recommended that council house rents increase by CPI plus 1% which equated to a real increase of 1.5% in 2021/22. This would give an average social rent in 2021/22 of £79.36 per week and an average affordable rent of £98.25 including services per week.

 

A detailed summary of the proposed service charge levels for 2021/22 was attached at Appendix A of the officer’s report.  It was noted that the proposed charges had been devised to ensure that as far as practicable services break even on costs.

 

*RESOLVED –

 

1.    That, for 2021/22, individual social rents be set based on the current National Social Rent Policy, giving a rent increase of 1.5% with effect from 5 April, 2021.

 

2.    That, for 2021/22 and onwards, where a social rent property is re-let to a new or transferring tenant the rent level be increased to the target rent for that property.

 

3.    That, for 2021/22, individual affordable rents be set based on the current National Social Rent Policy giving a rent increase of 1.5% with effect from 5 April, 2021.

 

4.    That, for 2021/22, and onwards, where an affordable rent property is re-let to a new or transferring tenant the rent level be set by reference to 80% of the market rent (including service charges where applicable) for a similar property at the time of letting or the formula rent for the property, whichever is the greater.

 

5.    That the Housing Revenue Account service charges for 2021/22 be increased as set out in Appendix A of the officer’s report.

 

REASONS FOR DECISIONS

 

1.    To enable the council to set the level of council house rents in accordance with Government guidelines and the Rent Standard.

 

2.    To enable the council to set service charges for 2021/22 and to ensure the cost of delivering services moves towards a break-even position.

 

3.    To contribute to the council’s corporate priority ‘to improve the quality of life for local people’.

 

Supporting documents: